“Being sued doesn’t have to be the end of your business,” states Rocco Beatrice of Estate Street Partners, “It’s just a bump in the road.” Let’s face it, anyone who is in business and takes chances runs the risk of being sued. In fact, the more successful the business, the more likely you are going to be sued. Look at it this way: You must have done something right, or no one would have wanted to sue you in the first place.
So now what? The lawsuit is pending or you already have a judgment against you, and your nerves are shot, your business is suffering, your personal property is in jeopardy and you just want to start over. Ok then, start over. Only this time, you are going to do it right. “You can reinvent your successful business, insulate it from the current lawsuit, and start fresh. Just take a deep breath and relax,” encourages Mr. Beatrice. In effect, Mr. Beatrice suggests that you make sure your new business isn’t tied to you or your old business, although it can be the same type of business. After all, the lawsuit can’t name a defendant that didn’t exist at the time of the alleged infraction.
So how can you have a business that isn’t tied to you? Well, the short answer is, you won’t own it. For example, you own a flooring business, ABC Flooring, and one of your employees makes a mistake and ruins a priceless antique inlaid floor and the owner sues you and your business. For all intents and purposes, your business is ruined, but you like the flooring business. Well, you can use a combination of an LLC and an UltraTrust® to start your new flooring company.
An UltraTrust® is an independent entity that is capable of owning things and is managed by a trustee and protected by a trust protector. The UltraTrust® can capitalize the LLC, now called “ABC Flooring, LLC,” and base it in a state such as Delaware that has favorable business laws. You become the manager of the LLC and run the flooring business as you always have. You have just created a brand new business that you don’t own and is not subject to your outstanding lawsuit. You work there and still go about your life as you did before, with one main difference: you can relax.
“If you want to use a plan such as outlined above, make sure that you use professionals, such as our team at Estate Street Partners. We have done this before and know what we are doing. Keep in mind, if there is even one mistake in the wording of your trust, the business may be included in the old lawsuit,” warns Mr. Beatrice, “You don’t want any part of your new life included with your old one.” The methods used by Estate Street Partners and the structure of the UltraTrust® have been tried and tested in countless courts, so you breathe a sigh of relief, so call us and you’re back in business!